Council urges landlords to apply for licences – but only dishes out 9% so far

Private landlords in one city who have not yet applied for licences to rent out their homes are being urged to act quickly despite the council only processing just over 9% of applicants.

Oxford City Council introduced a selective licensing scheme in September 2022, requiring all privately rented homes to obtain a licence.

This is the only city in the country where there is a citywide licensing scheme in place.

But with more than 10,500 licence applications received so far, the council has only issued 986 licences and around 2,000 draft licences.

‘Making good progress with issuing licences’

Oxford’s cabinet member for housing, Councillor Linda Smith, said: “We’ve had more than 10,500 applications to our selective licensing scheme and we’re making good progress with issuing licences.

“If you’re a landlord or agent who hasn’t applied yet then you need to get a move on.

“The application fee will increase from £480 to £1,100 on 1 September and you’re already at risk of enforcement action if your properties are unlicensed.”

Fee will increase to £1,100

The council’s standard fee of £480 is for a five-year licence and the fee will increase to £1,100, unless the property is newly rented within 12 weeks of the application.

The cheaper amount was established after consultation with landlords and agents, who argued that they should not bear the costs of enforcement against late or non-applicants.

Before the introduction of selective licensing, only houses in multiple occupation (HMOs) required a licence, accounting for less than 15% of private rented homes in Oxford.

The council says its selective licensing scheme will ensure that all rented homes are safe, well-maintained and properly managed.

Prove they are a ‘fit and proper person’

To obtain a licence, landlords must demonstrate compliance with safety and management standards, prove they are a ‘fit and proper person’ and meet council waste storage and disposal requirements.

Landlords and agents operating without a licence now face the risk of enforcement action, including financial penalties of up to £30,000 and the possibility of unlimited fines imposed by the courts.

The council also highlights that tenants living in unlicensed homes can apply for rent repayment orders (RROs) through a First Tier Tribunal, potentially reclaiming up to a year’s rent from their landlord.

It also warns that unlicensed landlords may also be required to repay any housing benefits received from the council, and they cannot serve a Section 21 ‘no-fault’ eviction notice.

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